Jefferson County's occupational tax and business license fee are illegal, but the county can continue to collect them pending a further order from the court, a county circuit judge ruled this afternoon.

Circuit Judge David Rains today upheld a 1999 law repealing the county's right to impose the half-percent tax on wages for most people who work in the county.

The ruling also strikes down a separate license fee for businesses that operate in the county.

The judge said the county can continue to collect the levies, but ordered the money to be put in an interest-bearing escrow account in a bank.

A 2007 lawsuit challenging the tax and license fee also ultimately seeks refunds for anyone who has paid the tax or license fee since April 1, 2000, when the repeal was to take effect. That amount now exceeds $520 million.

The judge ruled that refunds are not due for any occupational taxes or business license fees paid before today.

A circuit court judge declared the repeal law unconstitutional in 2000. But the 2007 lawsuit filed by Sam Hill and Jim McFerrin, asked Rains to revive the repeal law due to later court rulings.

Earlier Monday, Rains made the lawsuit a class-action case. That means anyone who has paid the occupational tax or business license fee automatically will be eligible for a refund if the judge orders one.

The ruling is a blow to the cash-strapped county, which already is considering bankruptcy because of ballooning bond debt.

The two disputed levies provide more than 10 percent of the county's general fund, including $70 million from the occupational tax and $6 million from the business license fee.